Silver Price Forecast: Faces Key Resistance, Possible Pullback Ahead

Silver has been testing resistance around a $32.65 swing high for the past four days or so as it consolidated around the highs. The resistance zone is represented by an internal uptrend line, a prior swing high from early-December at $32.33, and the 61.8% Fibonacci retracement near the high at $32.53. In other words, a likely solid resistance zone. On Monday, silver pulled back and generated a lower daily low and lower high, reflecting short-term weakness.

Since the pullback originates from a likely resistance zone, the price of silver may get weaker before attempting to go higher. It is also interesting to note that Friday’s price action had characteristics of a key reversal day. A new trend high was reached earlier in the session, but it was followed by sellers taking control and driving the price to the lows of the day by the end of the day.